VAT groups and disaggregation

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Client has 2 very distinct businesses operating under 2 limited companies. Both are below VAT registration threshold. They operate separate bank accounts etc etc.

He now wants to put both companies under control of a holding company.

From a VAT perspective...

1. is the turnover limit still on a company by company basis or a group basis?

2. does the group structure increase the likelihood of HMRC issuing a disaggregation notice?

 

Thanks

Replies (2)

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By shaun king
16th May 2017 17:20

VAT registration turnover limits apply to each legal entity not the group. Why should they consider it disaggregation if they are two disctinct businesses??

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chips_at_mattersey
By Les Howard
16th May 2017 17:34

The fact that the two companies are owned by the same holding company does not oblige them to become a VAT Group. That is the Client's choice.

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